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Eden Energy boosts funds by up to US$3M with convertible note facility with La Jolla Cove

Eden Energy (ASX: EDE) has received a vote of confidence from US-based La Jolla Cove Investors, with the two companies entering into a convertible note facility worth up to US$3 million.

The agreement covers three convertible notes, each with an issue price of US$1 million, payable in four instalments of US$250,000.

This arrangement provides a flexible back up for Eden’s non-renounceable rights issue, which is being offered at two shares for every seven held, at A$0.05 per share.

The offer includes one free attaching Eden option for each share issued under the offer, expiring on June 30, 2014, at an exercise price of $0.20 per share.

Earlier today, Eden announced the extension of the closing date for the rights offer, from December 1, 2011 to December 8, 2011.

The record date for determining entitlements has also moved, from November 16, 2011 to November 21, 2011.

Eden continues to progress concrete-strengthening products

Eden recently refined its existing technology to produce a concrete-strengthening product that is even stronger.

Due to the increased reinforcing and conductivity properties of the new product, it could prove to be highly sought by Eden’s existing and potential customers.

The company has already received positive results from testing its existing industrial-grade product in concrete reinforcement, a potentially major market for the company’s products.

Other Eden activities

In addition, Eden's vast UK shale gas and coal bed methane portfolios are potentially company making as the Welsh shale gas resource, in which Eden holds a 50% interest, is of world class dimensions.